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Apr 03, 2020

Macom Q2 2020 Earnings Report

MACOM's financial performance for Q2 2020 was reported, with revenue decreasing slightly year-over-year but increasing compared to the prior quarter, and adjusted operating income showing significant improvement.

Key Takeaways

MACOM reported a slight decrease in revenue compared to the previous year's fiscal second quarter but an increase compared to the prior fiscal quarter. The company's adjusted gross margin and adjusted operating income improved year-over-year and sequentially. MACOM expects revenue to be in the range of $129 million to $133 million for the fiscal third quarter.

Revenue was $126.4 million, a decrease of 1.6% year-over-year but an increase of 6.2% compared to the prior fiscal quarter.

Gross margin was 50.1%, compared to 44.6% in the previous year fiscal second quarter.

Adjusted gross margin was 54.5%, compared to 51.5% in the previous year fiscal second quarter.

Adjusted operating income was $19.6 million, or 15.5% of revenue, compared to $2.8 million, or 2.2% of revenue, in the previous year fiscal second quarter.

Total Revenue
$126M
Previous year: $128M
-1.6%
EPS
$0.17
Previous year: -$0.18
-194.4%
Adjusted EBITDA
$26.9M
Free Cash Flow
$20.5M
Adjusted Operating Income
$19.6M
Gross Profit
$63.4M
Previous year: $57.3M
+10.5%
Cash and Equivalents
$121M
Previous year: $92.7M
+30.3%
Free Cash Flow
$20.5M
Previous year: $12.9M
+59.5%
Total Assets
$1.11B
Previous year: $1.42B
-21.6%

Macom

Macom

Forward Guidance

For the fiscal third quarter ending July 3, 2020, MACOM expects revenue to be in the range of $129 million to $133 million. Adjusted gross margin is expected to be between 54% and 56%, and adjusted earnings per share is expected to be between $0.19 and $0.23 on an anticipated 68.5 million fully diluted shares outstanding.

Positive Outlook

  • Revenue to be in the range of $129 million to $133 million.
  • Adjusted gross margin is expected to be between 54% and 56%.
  • Adjusted earnings per share is expected to be between $0.19 and $0.23.
  • 68.5 million fully diluted shares outstanding.